Santa Clara, CA -- Taking another stride in its recently launched yearlong turnaround effort, Sun Microsystems has laid off about 950 more U.S. employees, including about 430 in the Bay Area, the company confirmed Monday.
This second round of pink slips papered the computer-server and software maker's Newark campus and other sites across the U.S., with additional cuts in Canada, Europe and Asia. Sun spokeswoman Stephanie Hess said in a press release that a worldwide figure totaling the latest job cuts was not available. The company announced two months ago that it would slash its global workforce by up to 5,000 employees, or 13%, as part of a plan to make the company consistently profitable again. Newly appointed chief executive Jonathan Schwartz said at the time that the workforce reduction, coupled with real estate consolidation, should help Sun increase its operating income to at least 4% of revenue by the end of June 2007 and 10% of revenue further into the future.
The cost-cutting initiatives are expected to save Sun $480 million to $590 million a year.
Sun announced the first round of layoffs in June when it axed 400 jobs nationwide. The company also is in the process of shutting down its Sunnyvale and Newark campuses, two of the four it has in Silicon Valley.